Why Facebook (FB) Stock Is Climbing Today

NEW YORK (TheStreet) -- Shares of Facebook Inc. (FB) are gaining 8.57% to $77.40 in pre-market trading on Wednesday, after the social network company reported an increase in earnings per share of 42 cents for the 2014 second quarter, from 19 cents for the year ago quarter, beating the Capital IQ consensus estimate of 32 cents per share.

Facebook's revenue for the 2014 second quarter rose to $2.91 billion versus $1.81 billion for the 2013 second quarter.

Additionally, Facebook's price target was increased to $100 from $85 at Jefferies Group (JEF), following the earnings beat. Analysts at UBS (UBS) upped its numbers on Facebook stock to $94 from $90.

Must read: Warren Buffett's 25 Favorite Stocks

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.


Sun Trust Banks
(STI) also raised its numbers on Facebook to $90 from $72.

TheStreet Ratings team rates FACEBOOK INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate FACEBOOK INC (FB) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the stock itself is trading at a premium valuation."

If you liked this article you might like

Snapchat Maintains Edge Over Instagram in U.S. Signups, But Not for Long

WhatsApp Rejects UK Demand for Access to Encrypted Messages

Facebook Could Be Back in China in 2018

Amazon, Google and Other U.S. Tech Giants Face a Battle Over Taxes With Europe

Facebook and Snap Have One Issue That Will Have to Be Solved: Peter Bonfield